Advanced Drainage Systems Inc Stock Forecast
Advanced Drainage Systems Inc stock downgraded from Buy Candidate to Hold/Accumulate after Monday trading session.
(Updated on May 06, 2024)
The Advanced Drainage Systems Inc stock price gained 2.79% on the last trading day (Monday, 6th May 2024), rising from $164.89 to $169.49. It has now gained 4 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the stock fluctuated 1.66% from a day low at $166.81 to a day high of $169.58. The price has risen in 9 of the last 10 days and is up by 8.28% over the past 2 weeks. Volume fell on the last day by -87 thousand shares and in total, 255 thousand shares were bought and sold for approximately $43.30 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stockis at the upper part of a wide and horizontal trend and normally this may pose a good selling opportunity but a break-up through the top trend line at $173.96 will give a strong buy signal and a trend shift could be expected. Given the current horizontal trend, you can expect Advanced Drainage Systems Inc stock with a 90% probability to be traded between $142.52 and $176.43 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
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WMS Signals & Forecast
The Advanced Drainage Systems Inc stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down, there will be some support from the lines at $162.48 and $164.93. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Wednesday, March 20, 2024, and so far it has fallen -1.85%. Further fall is indicated until a new bottom pivot has been found.
Support, Risk & Stop-loss for Advanced Drainage Systems Inc stock
Advanced Drainage Systems Inc finds support from accumulated volume at $162.04 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $2.78 between high and low, or 1.66%. For the last week, the stock has had daily average volatility of 2.97%.
Our recommended stop-loss: $163.28 (-3.66%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 32 days ago.)
Trading Expectations (WMS) For The Upcoming Trading Day Of Tuesday 7th
For the upcoming trading day on Tuesday, 7th we expect Advanced Drainage Systems Inc to open at $168.63, and during the day (based on 14 day Average True Range), to move between $164.74 and $174.24, which gives a possible trading interval of +/-$4.75 (+/-2.80%) up or down from last closing price. If Advanced Drainage Systems Inc takes out the full calculated possible swing range there will be an estimated 5.61% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $171.24 (1.03%) than the support at $162.04 (4.40%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is Advanced Drainage Systems Inc stock A Buy?
Advanced Drainage Systems Inc holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.
Current score: 0.339 Hold/Accumulate Downgraded
Predicted Opening Price for Advanced Drainage Systems Inc of Tuesday, May 7, 2024
| Fair opening price May 7, 2024 | Current price |
|---|---|
| $168.63 ( 0.510%) | $169.49 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for WMS
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 171.40 | 1.13 % | |
| R2 | 170.34 | 0.501 % | ||
| R1 | 169.69 | 0.115 % | ||
| Current price: | 169.49 | |||
| Support | S1 | 167.56 | -1.14 % | |
| S2 | 166.91 | -1.52 % | ||
| S3 | 165.85 | -2.15 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 172.68 | 1.88 % | |
| R2 | 172.56 | 1.81 % | ||
| R1 | 171.24 | 1.03 % | ||
| Current price | 169.49 | |||
| Support | S1 | 162.04 | -4.40% | |
| S2 | 157.97 | -6.80% | ||
| S3 | 138.08 | -18.53% |
WMS Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Feb 08, 2024 | Feb 29, 2024 | Mar 15, 2024 | $0.140 | 0.0857% |
| 2 | Nov 02, 2023 | Nov 30, 2023 | Dec 15, 2023 | $0.140 | 0.0996% |
| 3 | Aug 03, 2023 | Aug 31, 2023 | Sep 15, 2023 | $0.140 | 0.117% |
| 4 | May 18, 2023 | May 31, 2023 | Sep 15, 2023 | $0.140 | 0.117% |
| 5 | Feb 02, 2023 | Feb 28, 2023 | Mar 15, 2023 | $0.120 | 0.150% |
FAQ
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